Finnish firm in hot water over its approval of Xayaburi dam

Poyry gives go ahead to dam on Mekong saying the Laotian government has complied with its obligations. At the same time, it signs an eight-year agreement to monitor dam construction. Environmentalists and NGOs are outraged over the "conflict of interests". Finnish authorities now vetting possible breach of ethics guidelines.

Vientiane (AsiaNews/Agencies) - The
controversy surrounding a report issued by a Finnish firm, Poyry, continues
unabated. The study concluded that Laos can go ahead with the construction of
the Xayaburi dam on the Laotian section of the Mekong River, despite opposition
from other Mekong River Commission (MRC) member-nations since the project
was in compliance with Laos' obligations to them. However, the report is before
Finnish authorities in Helsinki after an ethics complaint was made against the
company over possible conflict of interest.

Otto
Bruun, campaign manager of Friends of the Earth Finland, noted that the "company
is fuelling a water conflict. This is bound to lead to serious negative human
rights and environmental impact in the region."

Lam
Thi Thu Suu, co-ordinator of the Vietnam Rivers Network, said that "Poyry's
misleading information about the impact of the Xayaburi Dam has prevented
co-operation in sharing water resources from advancing."

The
firm's November 2011 report, commissioned by Laos, said that other commission
members and stakeholders had been adequately consulted and the Xayaburi dam
could proceed without the commission's further approval.

Friends
of the Earth and 14 other NGOs filed an ethics complaint against Poyry Plc and
the Poyry Group because in their view the contract is an obvious "conflict of
interest".

A
spokesperson for the Finnish firm rejected the accusations saying the study was
conducted in a transparent manner.

The Xayaburi dam project involves
the construction of a US$ 3.5 billion hydroelectric plant with a capacity of 1,260
megawatts in a remote area of northern Laos.

It entails the forced removal of 2,100
residents from local villages with an impact on tens of thousands more.

A Thai company is in charge of the
construction and Thailand would be the project's main beneficiary.

Once up and running, the plant would
make Laos the "battery" of Southeast Asia. However, the MRC has called for a
ten-year moratorium on construction.

Another study released in February
of this year indicated that dams on the river could reduce the fish cash by
300,000 tonnes a year with major negative consequences for more than a million
people, especially in Cambodia.

Originating in the Tibetan plateau,
the Mekong flows through the Chinese province of Yunnan before reaching Myanmar,
Thailand, Laos, Cambodia and Vietnam.

About 65 million people live along
the waterway, earning a living from fishing (estimated to be around US$ 3
billion in value) and fish farming.

However, hydroelectric dams,
including the one in Xayaburi, would threaten the 4,880-long waterway, the second
most bio-diverse river in the world.

Earlier this month, the Laotian government
issued permits for the official start of construction.

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Finnish firm in hot water over its approval of Xayaburi dam South East Asia Cambodia Laos Vietnam Poyry gives go ahead to dam on Mekong saying the Laotian government has complied with its obligations. At the same time, it signs an eight-year agreement to monitor dam construction. Environmentalists and NGOs are outraged over the "conflict of interests". Finnish authorities now vetting possible breach of ethics guidelines.

06/11/2012 LAOSVientiane go ahead for Xayaburi dam. Bangkok agrees, environmentalists at warThe Laotian Government has given the green light to the resumption of work on the mega-plant for more than three billion dollars. Executive denies there are environmental problems. Opinion shared by Thailand. Ecologists and associations: "devastating" plants that put the region's development at risk.

11/05/2012 LAOSCambodia "suspends" construction of dam on Mekong Vientiane’s decision follows by protests from Cambodia and ecological groups that the dam will have serious consequences for millions of people. The dam would be the first of 11 planned constructions, but experts had called for a moratorium of 10 years to complete studies on their impact.

07/07/2012 LAOSXayaburi Dam, Vientiane promises halt on constructionFor the Lao Government work on the mega-plant has been stooped. However, changes are being considered to make the dam more "modern and transparent". Environmentalists sound alarm: the work continues and will have devastating impacts on the river and the Mekong basin countries. Protests of entire villages in Cambodia.

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